It's already been almost a month since The Bank for International Settlements (BIS) decision that Central Banks can hold up to 2% came into effect under their "Prudential treatment of cryptoasset exposures".
BIS initially was planning for a 1%, but when Central Banks asked for 5%, they proposed a 2% as a compromise.
A bank’s total exposure to Group 2 cryptoassets must not exceed 2% of the bank’s Tier 1 capital and should generally be lower than 1%.
Given that
Central Banks are already looking into this, let's examine the impact this could have.
Let's be conservative and assume we continue with the proposed 2%, and not the 5% that banks want.
Banks have about
$188T:
The value of bank assets worldwide increased gradually between 2002 and 2023, despite some fluctuation. In 2023, global bank assets amounted to more than 188 trillion U.S. dollars, up from 183.2 trillion U.S. dollars a year earlier.
At 2%, this represents
$3.76T in Bitcoin. For comparison, the current market cap of Bitcoin is
$2.05T.
This, even at 2%, is a game changer for Bitcoin.
If 10% of central banks buy to have 1% of their reserve in btc it's 20 times less needed, maybe not all in btc.